Source: Taxpayers Union
5 AUGUST 2020FOR IMMEDIATE RELEASE
The New Zealand Taxpayers’ Union is welcoming confirmation from the National Party that income tax bracket indexation remains party policy. However, suggestions that the National Party has no plans to cut income taxes will come as a major disappointment to struggling taxpayers. Taxpayers’ Union spokesperson Islay Aitchison says, “Following Judith Collins’s comments this morning that the National Party will not be campaigning on tax cuts, we spoke to the Party and confirmed that income tax bracket indexation is still a priority.”
“That makes sense. Indexing tax brackets to inflation isn’t a tax cut, it’s a remedy for the stealth tax hikes under the current settings. At the moment, New Zealanders move into higher brackets as inflation increases their nominal income, despite their buying power remaining stagnant.””Despite this positive news, it’s nevertheless disappointing that National wouldn’t cut income taxes. New Zealanders earning just $48,000 — significantly below the average wage — should not be paying 30 percent of their marginal income in tax.”
